Orchestra Private Equity (Orchestra PE) has entered a share purchase agreement to acquire Mammoth Coffee Lab, a South Korean company that runs the Mammoth Coffee franchise.
The agreement was executed via Orchestra Private Equity VII, according to The Asia Business Daily.
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The transaction is structured to acquire all shares of Mammoth Coffee Lab currently owned by representatives Kim Beom-su and Choi Kyung-hwan, alongside other shareholders.
The deal also includes all equity of Seojin Roasters, the affiliated coffee bean roasting business.
The consideration is reported to be around Won100bn ($68.5m).
An Orchestra PE representative was quoted by the publication as saying: “This acquisition of Mammoth Coffee was made through an overseas fund backed by global limited partners (LPs) from Europe, Australia, and Asia.
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By GlobalData“KFC Korea, for which we recently signed an SPA for sale, is also a portfolio company of the same overseas fund. We continue to invest in and support the growth of leading domestic consumer goods companies by leveraging global capital.”
Mammoth Coffee operates with a kiosk-based ordering set-up and automated production processes.
It started in 2012 in Hongdae, Seoul, and has grown to roughly 900 franchised outlets across the country, ChosunBiz reported.
Mammoth Coffee Lab generates approximately Won75bn in annual revenue, while Seojin Roasters reported sales of Won14bn.
Following completion, Orchestra PE intends to focus in Korea on increasing franchise openings, improving operational capabilities, and developing the digital customer experience.
The Orchestra PE representative added: “Based on our accumulated operational experience in the food service and franchise sectors, we aim to enhance our execution capabilities for growth in Korea while also seeking realistic growth opportunities in the Japanese market.”
